Apple Too Cheap, Deserves $1,100 Price Tag: Pro

If you thought Apple's tock was rich at its current lofty levels above $600, just wait until you get a load of it at $1,100.

So thinks one analyst, who despite the company's surprising earnings miss on Thursday is maintaining a $1,111 price target on its stock — putting the tech giant's market capitalization above a whopping $1 trillion.

Apple's disappointing third-quarter performance was a rare misstep for a company that normally can do no wrong in the eyes of Wall Street investors. Still, Brian White, analyst at Topeka Capital Markets, believes Apple's fundamentals justify his aggressive price target.

"It's very reasonable for a company that's growing at this rapid pace," said White, who called Apple's stock "significantly undervalued," especially given a revenue outlook of $52 billion.

Apple 'Significantly' Undervalued: Analyst

Brian White, Topeka Capital Markets analyst, takes a look at Apple's next quarter, and weighs in on what the company needs to do to keep Wall Street happy.

With the company unpacking both a new iPhone and two new versions of its market beating iPad, he said many analysts are struggling with how to accurately estimate the company's performance, and the impact of key products on its bottom line.

It all started when the iPhone 4S launched last fall. "The Street didn't exactly know how to model that seasonality, and you're seeing it again," White said. "This iPhone 5 is a much bigger launch than 4S, so people are really grappling with how do you model the seasonality."

Although Apple watchers applaud the company's innovative products, some have wondered whether it — like Microsoft — could soon find itself traveling on a road to eventual irrelevance. Apple's recent success has been on updates to existing products, and a few analysts have pointed to a pipeline of products that looks fallow.

White, however, said Apple can continue its ascent by making do with what it already has.

"Their market share in the core markets is tiny, so they still have a big opportunity to gain share in their markets," the analyst said. Meanwhile, the new iPad Mini, which is priced at $329, "opens up a whole new product opportunity in the lower-end tablet," he said.

In that way, White said, the company won't need a new game-changing gadget to achieve his price target.